The altcoin Pepe (PEPE) achieved its all-time high (ATH) on May 27, 2024, and has since experienced a decline. Despite this downward trend, the price chart displays a positive outlook, keeping investors optimistic about a potential recovery. Currently, PEPE is trading at approximately $0.0001264, with a recent 2.9% increase in the last 24 hours following a 13.5% decrease over the past week.
Evaluation of Market Conditions
Presently, Pepe's price hovers above the 50-day and 200-day simple moving averages (SMA) but approaches the 50-day SMA, indicating a critical juncture. Having previously broken out of an ascending triangle formation, Pepe reached a peak of approximately $0.00001725 before a pullback to the 0.5% Fibonacci retracement level.
The retracement level served as a strong support point, leading to a bullish market reaction. This correction aligns with a classic breakout and retest pattern associated with ascending triangle formations. Notably, the 0.5% Fibonacci retracement level coincides with the formation's top, hinting at potential bullish activity.
A successful rebound from this level could drive Pepe's price towards approximately $0.00001981, with potential resistances at $0.000014 and $0.000017 levels. Conversely, a bearish scenario might find support around $0.00001.
Pepe's price surge correlated with increased interest in the Ethereum ecosystem post-SEC approval of spot Ethereum ETF applications. Subsequent to the initial fervor, Ethereum has entered a consolidation phase, impacting Pepe's trajectory.
Concerns Over Supply Expansion
Notably, Santiment reported a record high of 218,000 Pepe investors and a surge in total PEPE supply from 420.78 trillion to 422.55 trillion coins valued at $22.3 million. This supply surge prompts questions, especially as CoinGecko data cites a maximum PEPE supply of 420.69 trillion, signaling discrepancies necessitating further investigation into coin generation processes.
With the evolving cryptocurrency landscape, memecoins like PEPE are anticipated to spearhead the upcoming bull market. As investors gear up to surpass previous ATH levels, the future trajectory of Pepe remains uncertain, awaiting developments in the volatile cryptocurrency sphere.
